U.S National Debt
Presented by: J. Yunker and C. George
As the national debt increases the United States continues to run out of options to pay it off. If the debt continues to grow at the rate it does then the U.S. will turn to one option: raising taxes. Many of us know that almost everything is taxed in our country and most everybody does not like it. As our country looks for ways to make money taxes is an obvious option. Higher taxes can have an affect on most people. In the future if the government raised our tax rates than the price that we have to pay for taxes greatly increases the total price. This in turn hurts the population because it causes the population to have less and less money.
Higher Interest Rates
Another way the government might try to make more money in the future is to raise our interest rates. The effects of higher interest rates will affect everyone. This will cause more people to borrow money from banks and try to take out loans to buy stuff that they don't have the money to buy. Another effect is the increase in mortgage interest payments, this will cause more and more people to not be able to pay off their house payments. All of these interest rate increases will result in uncertainty in the people which will result in less money for the future generations.
Germany all over again?
At the end of World War I , Germany had signed the Treaty of Versailles which made Germany pay for war. You may ask "How can you put a price on a war?" which is a very good point. Well, they had used the asses damages in relations to Germany's national wealth which took about 2 years to come up with. They had decided on 63 billion dollars was the right number for the price of war. Which you may think is a small amount but now that 63 billion is worth about 768 billion dollars today. Germany just started printing money off crazy which you may think is the smart thing to do. Well, your wrong it is actually not the smart thing to do because their money just was worth nothing because they had just printed money they did not have. This made just buying milk and bread over millions of dollars. It was smarter for people that lived in Germany to use paper currency for fire then buying logs because logs were way more expensive. We owe about 1.3 TRILLION dollars to China and we don't have that type of money laying around. Now if China asked for that money and time soon we would almost be forced to print off money to pay to them and we would go into the same problem that Germany had and that could potentially produce the same result.
This image above shows just how much money it took in Germany to buy a head of cabbage.
Is it possible to pay the US Debt?
The United States of Americas debt goes up every second according to the US debt clock. If we needed to be out of debt by tomorrow Mr. Barack Obama could tell every citizen in the US to pay 52,000 dollars to get us out of debt to pay off all of the countries. Now is this possible? Some may think yes and some may think no. Honestly, it could go anyway. But how could a baby born yesterday pat 52,000 dollars when they can't walk better yet work and make money. Some conclusions to the US debt is just crazy and why would we want to put ourselves through that when it is our own governments fault for owing to many countries money.
In the top left box of the picture you can see how much money each American must pay to completely pay off our debt.
What will the US debt be in 2020?
The US debt is going up like crazy in since 2009. Since 2009 the US debt as gone up 5.3 Trillion according to www.pundithouse.com. If we stay on this rate it will reach heights that we will have never heard of. We think a million dollars is a lot of money, think about 20 Trillion dollars. If teens don't realize about how much are debt is now they will never think of a way to get us out of debt. Now some kids may think well if it has not hurt us yet it will never hurt. Well what happens when China asked for the money we owe them and we don't have it. That is why teens need to realize how bad the US debt is now! But, most of all they need to understand it.
This is what experts think will happen by the end of the year 2019 if we continue at the rate we are going.